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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Gary Stover who wrote (15657)	9/26/1998 3:43:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

ADLT.. This one looks another that has been badly maligned. Down 38% on Thursday. I think this one is indeed in for quite a pop in the next 1-2 days, especially after a strong buy upgrade and good earnings report. IF there is no further bad news coming out of the company in the next few days it can even return to its 'valuation' which is set at 24. Growth is estimated at 25% a year and the next few trading sessions should be critical. Dow Jones Newswires -- September 24, 1998 Advanced Lighting Shrs Dn 29% After Meeting 4Q View NEW YORK (Dow Jones)--Despite reporting fourth-quarter earnings that met expectations, Advanced Lighting Technologies Inc. (ADLT) shares lost as much as 37.9% Thursday. "I think there was some confusion on the conference call," said Raymond James analyst John T. Mahoney. "Investors were spooked by the fact that the company wasn't able to make forward-looking comments regarding the company's situation." Mahoney attributed the lack of information on the company's outlook to the Securities and Exchange Commission's nondisclosure rule. Advanced Lighting filed a shelf registration in July. Shares of the Cleveland-based maker of metal halide lighting products initially rose 12.8% following the release of the company's earnings, but began trending downward around 11:30 a.m. Advanced Lighting's conference call began shortly after 11 a.m., said Advanced Lighting spokesman Rick Barone. Barone didn't offer any other explanation for the movement in Advanced Lighting shares. "We did meet our expectations," said Barone. "The company feels good about where the businesses are at for the long term." Barone wouldn't comment on Mahoney's view, saying it was subject to intepretation. Advanced Lighting shares were recently trading at 12 1/4, down 7 1/16, or 36.6%, on Nasdaq-volume of 857,800 shares traded. Average volume is 91,800. Advanced Lighting's overall fourth-quarter performance won't change Raymond James analyst Mahoney's fiscal year 1999 earnings expectation of $1.06 a share. "Gross margins are great, and getting better," Mahoney said. However, he believes the company's fourth quarter was helped by a lower-than-expected tax rate. Advanced Lighting earned $4.3 million, or 21 cents a share, on sales of $53 million, compared with earnings of $2.6 million, or 19 cents a share, on sales of $25.4 million in the year-ago period. Also, Mahoney noted sales, general and administrative expenses were about $1 million higher than expected because of the launch of a product called Pulse Start. He expects those expenses to decline once the product's roll-out is completed. Advanced Lighting spokesman Barone wouldn't comment on the effect of Pulse Start's launch on the company's first-quarter earnings. Barone noted there was a softness in fourth-quarter sales, which he attributed to Advanced Lighting's focus on its core metal hallide lighting products. "Advanced Lighting strategically backed away from sales of products in our non-core areas during the quarter," Barone said.